Usually, the property market leans one way or another. It’s either great for sellers seeking capital gains because there’s lots of competition, or it’s great for buyers because there are a lot of homes for sale and not much demand – meaning you could grab a property with a cheaper home loan.
However, according to data from property research firm CoreLogic, neither buyers nor sellers have an edge in today’s property market. So what’s going on? And what do buyers and sellers need to know about getting the best deal right now?
Spring sales stock is up
Spring property season is usually Australia’s busiest. Many owners and investors have advertised their properties for sale in the last few months, increasing new listings to over 38,400 in the month leading to 8 October (a +9.7% rise compared to last year).
This means buyers have slightly more choice this spring, though CoreLogic warns that new listings are still down -3.0% from the five-year average. With more supply up for grabs, however, this tilts the market slightly in the buyer’s favour.
Key takeaway: Depending on where they look, buyers can afford to be picky right now. Auction clearance rates are meh
Over half of Australian properties up for auction are selling successfully – not great, not terrible. CoreLogic reports the national auction clearance rate in the month leading to 8 October was 65.2%, down from 66.1% in the month to 3 September.
A high clearance rate indicates high buyer demand, so a ‘meh’ one means buyers are still showing up, just not everything sells. For a usually frantic market, a clearance rate of 65% is pretty middle-of-the-road.
Based on raw numbers alone, though, sellers have a slight advantage at spring property auctions – good news for those hoping to sell for